Trump's Latest Move On AI And China Propels Chip Stocks

Zinger Key PointsAI chip stocks surge as Trump prepares to unveil $70B tech and energy investment plan in PennsylvaniaNvidia climbs after U.S. lifts chip export curbs to China; analysts expect 10% upside to growth estimatesGet daily-updated rankings across momentum, growth, value, trends, and quality to spot the strongest stocks in any market.Artificial intelligence (AI) chip stocks, including industry giants likeNvidiaNVDA,Advanced Micro DevicesAMD, andTaiwan Semiconductor Manufacturing Co.TSM, alongside key players such asBroadcomAVGO,Arm HoldingsARM,Marvell TechnologyMRVL, andMicron TechnologyMU, saw a significant surge in their stock prices on Tuesday.This market uptick was primarily driven by two major developments: reports indicating the Trump administration’s plans to announce substantial AI and energy investments in Pennsylvania, and the U.S. government’s decision to lift certain chip export restrictions to China.President Donald Trumpis set to unveil a major initiative on Tuesday near Pittsburgh, detailing plans for approximately $70 billion in new investments in artificial intelligence and energy infrastructure.Also Read:Nvidia Outpaces Market With AI-Powered Growth, Nears Record HighsBloombergreportedon Monday that this comprehensive plan encompasses the development of new AI data centers, the expansion of power generation capabilities, critical upgrades to grid infrastructure, and the introduction of new training programs and apprenticeships.This announcement represents a pivotal move in Trump’s broader strategy to bolster America’s leadership in AI by actively encouraging private investment, streamlining regulatory processes, and expediting permits for both technology and energy projects.The event, hosted by Senator David McCormick at Carnegie Mellon University, is expected to draw a distinguished gathering of around 60 top executives from various sectors, including leaders fromBlackRockBLK,Palantir TechnologiesPLTR,Anthropic,ExxonMobilXOM, andChevronCVX.Further underscoring the magnitude of these investments, Blackstone PresidentJon Grayis anticipated to announce a $25 billion initiative specifically targeting data center and energy infrastructure expansion.This project is projected to generate thousands of construction and permanent jobs, contributing significantly to the economy. This follows earlier announcements made under Trump’s second term, notably a staggering $100 billion AI investment pledge from a consortium includingSoftBankSFTBFSFTBY,OpenAI, andOracleORCL.Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100.Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get StartedThese strategic moves, alongside the recent rollback of Biden-era AI chip restrictions, are explicitly aimed at counteracting China’s aggressive advancements in AI and maintaining the United States’ technological superiority on the global stage.Adding to the positive momentum for Nvidia and other chip stocks was the U.S. government’s recent decision to ease chipexport restrictions to China. This move is particularly impactful for companies like Nvidia, which had faced significant revenue setbacks due to previous bans.Gene Munster, managing partner atDeepwater Asset Management, expressed optimism, stating that Wall Street analysts are likely to raise Nvidia’s growth estimates by approximately 10% following this development.While acknowledging that some analysts might have already factored in the return of Nvidia’s H20 chips to the Chinese market, Munster still anticipates a boost to overall forecasts, emphasizing that, “Either way you look at it, great news for $NVDA.”This is especially relevant given that Nvidia had previously incurred a substantial $4.5 billion charge in the first quarter of this year, directly attributable to the export ban on its H20 products to China, which was enforced on April 9.NVDA Price Action:NVDA stock is trading higher by 4.69% to $171.75 premarket at last check Tuesday.Read Next:Emergence Of UALink As A Viable Alternative Could Challenge Nvidia’s Dominance, Analyst AssertsLoading...Loading...NVDANVIDIA Corp$171.784.70%Stock Score Locked: Want to See it?Benzinga Rankings give you vital metrics on any stock – anytime.Reveal Full ScoreEdge RankingsMomentum81.89Growth98.62QualityN/AValue6.52Price TrendShortMediumLongOverviewAMDAdvanced Micro Devices Inc$153.785.16%ARMARM Holdings PLC$147.452.01%AVGOBroadcom Inc$279.741.50%BLKBlackRock Inc$1090.00-1.93%CVXChevron Corp$151.30-0.23%MRVLMarvell Technology Inc$74.252.40%MUMicron Technology Inc$120.361.48%ORCLOracle Corp$232.811.54%PLTRPalantir Technologies Inc$148.53-0.42%SFTBFSoftBank Group Corp$71.72-%SFTBYSoftBank Group Corp$35.000.55%TSMTaiwan Semiconductor Manufacturing Co Ltd$233.592.15%XOMExxon Mobil Corp$113.58-0.30%Market News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. . .Posted In:GovernmentNewsTop StoriesMoversTechMediawhy it's moving